Best MultiBagger Stock of 2020 / Best Multibagger Stock for Long Term
As we have listened in news many times that if you have bought this stock 20 years back you were sure a millionaire in today’s date but this was passed. Here we will discuss the Multibagger stock for 2020 which will make you .millionaire/Crorepati in the long term.
With Long Term we mean that you hold stock for 15-20 years and add small quantities of stock at frequent intervals.
Here is the Best Multibagger stock –
IRCTC is the only company in online train ticketing booking . From last two days this stock is making a upper circuit of 5% it is because government has decided to operate 15 special trains from 12 May 2020 and all the tickets will be sold through IRCTC .
IRCTC is the government PSU and it creates monopoly as it is a only company in online ticket booking so it has a huge potential as ticket booking is growing every year and also people prefer to book tickets via online . Besides online ticketing IRCTC has other source of income also .
It generates revenue from it’s catering service RAIL NEER is the IRCTC brand in drinking water. You only see this water brand in the railway station or in train. HERITAGE TRAINS is the next source of income other than ONLINE TICKETING SERVICE and CATERING SERVICE.
IPO of IRCTC was issued at the Price band of RS 315-320 per equity share on 30th September 2019 and listing date is 14 October 2019 , IRCTC has made it’s all time high Rs 1994 in just 5 months of it’s listing and giving 6 times return to it’s share holders . Now due to corona panademic and rail operations was suspended so this stock is now currently trading at RS 1436 .
Net profit Margin of comapny is increasing with each quarter it passes also Comapny has no debt and profit and revenue both increasing with every quarter and also promoters has not pledged any shares . Comapny also declared dividend of Rs 10 per equity shares on March 2020 .
For investing in this stock you can do SIP in this stock means can buy this stock every week ,every month so that you can buy this stock on every price and can average it which will benefit you in long term and this stock has the power to make you a billionaire in long term
2- SBI CARDS
This is the second stock which will sure give multibagger returns in long time and has the power to make you millionaire . Currently the stock is trading Rs 548 which is near to it’s 52 week low Rs 50 1 .
SBI Cards is the only comapny in it’s segment which is listed in market . It is the second largest company in Credit card issuer company after HDFC . It has customer base of million cards . Parent company of SBI Cards is SBI Bank .
As we know that only 1 or 2 % people in india hold credit card and in future this number will increase and SBI cards is targeting to that 98 % customer base which is untouched and as we know if customer base of company increases it increase company revenue and profit and it will reflect in company EPS if EPS increase it will directly increase the comapny price .
SBI cards have different sources of income other than Credit Card interest . Processing Fees is the main Source of income for SBI Cards . Late Fees Charged by SBI Cards on not paying bill on time . These are the main source of income of SBI Cards .
Since it is a new listing and is tarding below it’s Listing price so you must no to do bulk buy in this stock just do SIP in this stock and for long term investing this stock will make you millionaire .
3- HDFC AMC
This stock is the favourite stock of investors . This stock double the investor’s money in just one year of listing which shows that this stock capability of giving multibagger returns . Current Market price of HDFC AMC is RS 2559 .
As we know that India’s current population is mainly of age group 20-30 which wants to do everything in planning and it wants to become millionaire at an early age and also they want to secure there savings , So to secure this savings they invest in mutual fund because mutual fund have fund managers to invest your money in proper stocks and also you get consistent 12% . HDFC AMC is the india’s largest AMC of India . People have faith in this AMC because HDFC is the parent company .
Due to it’s increasing revenue and profit and also Current growth of India’s Mutual fund Industry make this stock a favourite stock and it has the potential to become a multibagger n long term .
4- HDFC LIFE
HDFC LIFE also have the potential of becoming multibagger stock because of it’s industry which is Life Insurance . This sector is the among the fastest growing sector of India . Current share price of HDFC Life is Rs 518 .
Life insurance is the need of eveyone in today’s era because no one knows what mishappening can happen with them and to secure the family’s future everyone is insuring itself . HDFC life makes it barnd value in the Field of insurance and it is the leader in it’s sector .
Due to corona panademic company’s 4th Quarter result was low and not upto the expectation and net profit was decreased but despite all this we know that Insurance Sector will grow in long term . So HDFC LIFE have the capabilty of making you a millionaire in long term
5- BAJAJ FINSERV
BAJAJ FINSERV already proves itself as a multibagger . 5 years back Stock was trading at RS 1444 and in Feburary 2020 stocks makes the high of RS 9950 which is 7 times . If any stock is making your money 7 times in just 5 Years it is automatically considered as a multibagger . Due to corona panademic the share price of this stock gets corrected now the current share price of Bajaj Finserv is RS 4809
Bajaj Finserv deals mainly in the retail lending and it is categorized in NBFC( Non -Banking Financial Institutions ) . It gives retail loans like Mobile Phone , Electrical Appliances , Peresonal Loans . Apart from Loan company has other source of income like File charges of a new file , If a person defers loan charges late fees . Rate of interest is high on unsecured loan .
The main success of Bajaj Finserv is that it gives Unsecured loans mainly to government Salaried Employees and to doctors and these people never defer loans.
Due to corona panademic Quarter Net profit decline and profit margin declined due to competition in Retail loan field . Since it is the market leader in Reatil lending so people prefer to take retail loan from bajaj finserv .
Since India is country where people want a lavish lifestyle and for that lifestyle they don’t hesitate in taking loan so if they take loan it will increase company revenue and profit increase which will increase EPS and increase in EPS will directly increase the Share price and in the end it will become a multibagger and make investors millionaire in long term.
How to invest in these stocks ?
In this corona pandemic. Do not do lump sum investment in these stocks. Do SIP in these stocks means buy little quantities in these shares. You can buy one share per week, one share per month, one share per quarter. The benefit you will get by buying sharing shares in small quantities that you get a share at every price and it will average the price which will directly benefit you in the long term.